Beacon Capital Management Advisors is experienced in setting up Solo 401k plans for our clients and we have developed working relationships with many Solo 401k providers.
In general Solo 401k plans are broken down into 3 main groups and below are some of the defining features.
1) Solo 401k plans with one mutual fund family
- Choose from funds through one mutual fund family (i.e. Invesco, American Funds, Pimco, Pioneer etc)
- Inexpensive – The administrative fees for Solo 401k plans vary depending on the Solo 401k provider, but the administrative costs can be as low as $0 to setup, $15 annual fee and $40 fee for a loan.
- Loans are available.
- Roth 401k contributions are available.
Clients select this type of Solo 401k plan because they like the simplicity and the low administrative fees. They feel one mutual fund family and 20 to 50 mutual fund choices is sufficient for their 401k. Clients may select this type of Solo 401k plan if they are interested in getting a 401k loan and want low administrative fees.
2) Solo 401k with multiple mutual fund families, ETFs and stock trading
Choose from over 1,000 mutual funds and multiple mutual fund families
- Stock trading available.
- More expensive – Fees vary depending on the Solo 401k provider, but the administrative costs can be $275 to setup and $275 per year. Additional fees for stock trading and other administrative fees may apply.
- Loans are available.
- Roth 401k contributions are available.
Clients select this type of Solo 401k plan because they need a lot of investment flexibility and need the ability to choose from over 1,000 mutual funds, ETFs and do stock trading.
3) Solo 401k investing in real estate, tax liens, gold and alternative investments
- Can invest in real estate, tax liens, gold and other alternative investments.
- Very Expensive.
Clients select this plan because they want to invest in non-traditional investments. These plans are expensive and have other potential complications not found with other Solo 401k providers.
Contact us and we will provide you with more information. Please indicate what type of Solo 401k provider you are interested in.rested in.